U.S. economy adds 115,000 jobs in April, while jobless rate holds steady
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The U.S. economy added 115,000 jobs in April, while the unemployment rate held at 4.3%, the Labor Department said on Friday.
Why it matters: Employers kept hiring through the Iran war's energy shock, a sign of labor market resilience that complicates the case for the Federal Reserve to cut interest rates.
By the numbers: Economists expected roughly 65,000 jobs to be added last month.
- The Bureau of Labor Statistics said job growth in March was slightly stronger than first estimated, while the prior month's losses were worse than initially thought.
- The economy added 185,000 jobs in March, about 7,000 more jobs than the first estimate. Payroll employment in February was revised down by 23,000 to reflect a loss of 156,000 jobs that month.
Zoom in: Health care added 37,000 jobs last month, continuing a trend of that sector leading jobs growth in the economy.
- Hiring in transportation and warehousing also boomed, with employment rising by 30,000 — reflecting a gain in delivery drivers (which saw employment rise by 38,000 alone).
The big picture: The jobs report lands at a pivotal moment for the Federal Reserve, which is set for new leadership. The central bank is navigating the deepest internal divisions in more than three decades.
- At its last policy meeting, four officials dissented — with three opposing the language that signals future interest rate cuts — the most at a single meeting since 1992.
- A weakening labor market gives ammunition to those advocating for a cut. A strengthening labor market gives officials cover to hold rates steady, or to consider rate hikes if inflation worsens.
- Higher energy prices from the Iran war have pushed the Fed's preferred inflation gauge to its highest level in nearly three years.
The bottom line: The report confirms a recent stretch of data that suggests the job market has stabilized, despite headlines about companies announcing AI-driven layoffs.
Editor's note: This story has been updated with additional details.
